we sold our forefather property and my share credit in my bank account 15 Lakhs and i same as transferred to my spouse account. still its taxable for me? if yes how to i avoid from tax.
I am currently working in abroad, i regularly transfers money from my NRE account to local savings bank accounts, the money which i had transferred is it taxable .? Please clear my doubt.
Do I have to pay tax, If a couple of my relatives transfer money to my account to hand over to another relative who has no bank account, for their maintenance //monthly expenses// and paying their rent online from my account. Say the money is 50 k every month. My account is not a salary account, yet I have my salary also deposited into my account which is below the taxation slab.
Any money above 50k from distant relatives will be taxed in your hand as its your income. Whether you are passing it again to someone is a different thing. If an enquiry comes tomm, then you will have the headache of proving that its not income etc
I received 10L from my relative transferred in my bank account through net banking. Do I need to pay taxes on this? and howmuch will it be?
and what if the amount was 2.5L transferred to my account, do I still have to show it in ITR and don’t have to pay any tax since upto 2.5L its free?
Which relative? If its from brother or sister etc.. its not taxable in your hands.. If its distant relative, then it will be taxable as per your slab as its treated as your income above 50,000
When one relatives transfer 10 lack rs in my saving ac only for 4 month then can i payable for tax and if payable then how to file the income tax return??
Yes they can .. if you are transferring it back later to them, then you have nothing to worry. There is no tax angle here , because its not your income, but just a loan
Sir,
I m admin of a committee.so every month all member deposited money to my account and I m govt servant too.
Is there any problem to take money from them not more than 1lack
Hello,
I am organizing a trip for my friends. Total cost is around 1.8 lacs and there are 20 people.
If everybody pays ~10k by Bank transfer will I have to pay tax on it?
I am planning to buy a commercial property and initially I have to pay 50% of the cost to the builder which is around 16 Lakhs , so instead of taking a bank loan I am thinking to borrow money from my friends ( 8 Lakhs) via NEFT in to my account and then directly pay the builder from my account to avoid interest of a bank loan and then going forward slowly slowly will repay my friends ( more than 1 ) for the borrowed amount , I want to ask is this ok or by this I will invite some troubles related to IT or money laundering ? Not sure .. Please help
Thanks
I received amount around 5K from my employer as a gift on my marriage via check. will it be taxable? and around 25K my friend deposit/transfer money in my account. will it be taxable?
My Sister wants to use my Mother’s account for doing her daily transcation of Business. My monther is under Non-taxable category. Can she use my mothres accout for her saving her taxes? Is their any impact on my mother finacial transcations?
Most of the people use others account to take payments so that its divided between accounts and there is no tax. But you need to talk to CA on this and if this recommended or not !
i always send money from one bank to another bank through net banking of third person. Will it be taxable . Ofcourse it was my freind. what will have to do now .would you tell me pleaase
Sure Ashal, Completely agree with you. I won’t be investing this money for any income. But now take this scenario. I have a housing loan on my name taken from SBI max gain. I read one of your post saying if there is extra money keep it in max gain and when required take it back. So now by the time the money is to be given to the builder (Brother’s flat), can i use my brother’s money to keep it in my MAx gain account and when the builder demands, i can take it out from the maxgain account and give to the builder. (Will this be considered as my investment?)
Dear Rahul, as long as you can control your greed & do not indulge into any income from this money transfer, you may continue to receive from Brother & transfer to Builder.
The moment, you start thinking to earn any profit, income from Brother’s money, trouble starts.
Thanks Ashal for your guidance. I will indeed transfer the money to the builder. But again will it be ok if my brother transfers more money to my account in future and then inturn i transfer it to the builder as he does not have an account in India The total transactions will be for about 50 lacs.
Dear Ashal, I got the point that it will not be a good option to invest this money. Now, will it be ok if this money is given to the builder, as our basic purpose was to ultimately give all this money to the builder for the flat that my brother has bought.
Thanks, Rahul.
Dear Rahul, no need to open account for your brother. He may simply wire transfer directly into his builder’s account. You w’d have to just collect the receipts of the payment. That’s it.
Thanks Ashal. That is a another nice suggestion to transfer the amount directly to the builder’s account through Wire transaction. Now my query is what about the amount he has already transferred to my account, it is around 20L. Will i be taxed on it? Also can this money be invested anywhere for about a year’s time?
Dear Rahul, till the time, money is not earning any income for you, no problem to you but the moment, the money is earning any income, the problem starts. the income ‘ll be taxable already for the SB acct. interest which ‘ll be more than 10000 Rs.
My personal take, if you want to use this money for next 1Y time frame for your own good, please do not indulge in such things as it ‘ll complicate the matter for you for your own taxation.
Dear Rahul, Your brother can open a NRE account (account takes in dollars and issues rupees on withdrawal) here in India. Then your brother can transfer dollars in the NRE Account and pay the builder from his own NRE account. This can eliminate your bank account coming into the picture and avoid queries for credit entries that are not related to your income.
I just realised that my actual question was not at all posted on the site when i posted my first question 🙁 don’t know what hapenned. Here is what i wanted to post:
My brother is working in US and he has bought a Flat in India. He regularly transfers money to my bank account. It is aroung 1 lacs per month.
My Query is:
1. Will this money be treated as my ‘Income from other source’.
2. Will i have to pay income tax on this amount.
3. If I invest this amount in some fix deposit or any other investments will I be taxed?
4. He has transfered aroung 20Lacs and there is still time to pay the amount to the builder. Can this money be invested for about a years time so we get some benifits on this.
Again my main concern is will I have to pay the income tax for all this amount.
Dear Rahul, what’s the end use of this money by you? Was the money gifted to you for your own consumption or you received it merely as a carrier & transfer it to some else?
Rahul,
On an another point, please make sure that your bank account is not being used as a via media for regular incoming transactions / credits. You may invite a hassle of tax man’s queries on credits being made to your account and a challenge for you to prove that it is not your income but a gift from a blood relative which is tax free.
As a gift it is tax free. Have a gift deed or letter of agreement made so that if there is a scrutiny later (chances are high today as everything is computerized) you can show it as proof to the taxman
we sold our forefather property and my share credit in my bank account 15 Lakhs and i same as transferred to my spouse account. still its taxable for me? if yes how to i avoid from tax.
Yes it will be taxable in your hand only.
The only way to save tax on that is to invest the proceeds into 54EC bonds.. upto 50 lacs max
Manish
I am currently working in abroad, i regularly transfers money from my NRE account to local savings bank accounts, the money which i had transferred is it taxable .? Please clear my doubt.
Thanks,
Omkar Sutar.
No , its not taxable . As its not income , its your own money
I have transferred 1 CR Rupees in my father’s accounts, Is it Taxable? And how much cash can i withdraw from the bank?
Not taxable for your father .. You can withdraw any amount you wish.. but why are you doing this? What do you want to achieve?
Manish
Hi,
Do I have to pay tax, If a couple of my relatives transfer money to my account to hand over to another relative who has no bank account, for their maintenance //monthly expenses// and paying their rent online from my account. Say the money is 50 k every month. My account is not a salary account, yet I have my salary also deposited into my account which is below the taxation slab.
You can land into trouble .
Any money above 50k from distant relatives will be taxed in your hand as its your income. Whether you are passing it again to someone is a different thing. If an enquiry comes tomm, then you will have the headache of proving that its not income etc
Manish
Thank you for your reply, Mr. Manish.
My cousin wants to send money to my mothers account from dubai my mother is his father’s sister will it be taxable in her hands?
No
I received 10L from my relative transferred in my bank account through net banking. Do I need to pay taxes on this? and howmuch will it be?
and what if the amount was 2.5L transferred to my account, do I still have to show it in ITR and don’t have to pay any tax since upto 2.5L its free?
Which relative? If its from brother or sister etc.. its not taxable in your hands.. If its distant relative, then it will be taxable as per your slab as its treated as your income above 50,000
Manish
hi i borrowed a loan from my friend a few years ago, now i am sending this amount back to his account. is it taxable? say around 2.5 lakhs
No , its not ..
When one relatives transfer 10 lack rs in my saving ac only for 4 month then can i payable for tax and if payable then how to file the income tax return??
Yes they can .. if you are transferring it back later to them, then you have nothing to worry. There is no tax angle here , because its not your income, but just a loan
Manish
Sir,
I m admin of a committee.so every month all member deposited money to my account and I m govt servant too.
Is there any problem to take money from them not more than 1lack
Its not recommended to do this.. Kindly use some other bank account which is for committee purpose !
Manish
Hello,
I am organizing a trip for my friends. Total cost is around 1.8 lacs and there are 20 people.
If everybody pays ~10k by Bank transfer will I have to pay tax on it?
No, you will not pay tax, because its not INCOME .. you can prove it !
Hello
I am planning to buy a commercial property and initially I have to pay 50% of the cost to the builder which is around 16 Lakhs , so instead of taking a bank loan I am thinking to borrow money from my friends ( 8 Lakhs) via NEFT in to my account and then directly pay the builder from my account to avoid interest of a bank loan and then going forward slowly slowly will repay my friends ( more than 1 ) for the borrowed amount , I want to ask is this ok or by this I will invite some troubles related to IT or money laundering ? Not sure .. Please help
Thanks
This is the best solution actually if you can implement it properly !
No issues from tax department side !
Sir,
I received amount around 5K from my employer as a gift on my marriage via check. will it be taxable? and around 25K my friend deposit/transfer money in my account. will it be taxable?
No, any gifts you get on marriage are not taxable !
My Sister wants to use my Mother’s account for doing her daily transcation of Business. My monther is under Non-taxable category. Can she use my mothres accout for her saving her taxes? Is their any impact on my mother finacial transcations?
Most of the people use others account to take payments so that its divided between accounts and there is no tax. But you need to talk to CA on this and if this recommended or not !
Will i have to pay tax if my brother transfer money to my account?
example: 10 Lac
No, its tax free for you !
My find need to transfer money by his account to me any tax for 20k if he transfer
Not upto Rs 50,000 and incase you repay him back, then there is no issue at all for any amount of money !
i always send money from one bank to another bank through net banking of third person. Will it be taxable . Ofcourse it was my freind. what will have to do now .would you tell me pleaase
the money you send is always POST TAX money anyways !
Sure Ashal, Completely agree with you. I won’t be investing this money for any income. But now take this scenario. I have a housing loan on my name taken from SBI max gain. I read one of your post saying if there is extra money keep it in max gain and when required take it back. So now by the time the money is to be given to the builder (Brother’s flat), can i use my brother’s money to keep it in my MAx gain account and when the builder demands, i can take it out from the maxgain account and give to the builder. (Will this be considered as my investment?)
Dear Rahul, as long as you can control your greed & do not indulge into any income from this money transfer, you may continue to receive from Brother & transfer to Builder.
The moment, you start thinking to earn any profit, income from Brother’s money, trouble starts.
Thanks
Ashal
Thanks Ashal for your guidance. I will indeed transfer the money to the builder. But again will it be ok if my brother transfers more money to my account in future and then inturn i transfer it to the builder as he does not have an account in India The total transactions will be for about 50 lacs.
Dear Ashal, I got the point that it will not be a good option to invest this money. Now, will it be ok if this money is given to the builder, as our basic purpose was to ultimately give all this money to the builder for the flat that my brother has bought.
Thanks, Rahul.
Dear Rahul, please give the money to builder. that’s the best solution for your own good.
Thanks
Ashal
Dear Rahul, no need to open account for your brother. He may simply wire transfer directly into his builder’s account. You w’d have to just collect the receipts of the payment. That’s it.
Thanks
Ashal
Thanks Ashal. That is a another nice suggestion to transfer the amount directly to the builder’s account through Wire transaction. Now my query is what about the amount he has already transferred to my account, it is around 20L. Will i be taxed on it? Also can this money be invested anywhere for about a year’s time?
Dear Rahul, till the time, money is not earning any income for you, no problem to you but the moment, the money is earning any income, the problem starts. the income ‘ll be taxable already for the SB acct. interest which ‘ll be more than 10000 Rs.
My personal take, if you want to use this money for next 1Y time frame for your own good, please do not indulge in such things as it ‘ll complicate the matter for you for your own taxation.
Thanks
Ashal
Dear Rahul, Your brother can open a NRE account (account takes in dollars and issues rupees on withdrawal) here in India. Then your brother can transfer dollars in the NRE Account and pay the builder from his own NRE account. This can eliminate your bank account coming into the picture and avoid queries for credit entries that are not related to your income.
Hi Bunker, this looks like a good option to open a NRE account. Thanks for the suggestion.
Hi,
I just realised that my actual question was not at all posted on the site when i posted my first question 🙁 don’t know what hapenned. Here is what i wanted to post:
My brother is working in US and he has bought a Flat in India. He regularly transfers money to my bank account. It is aroung 1 lacs per month.
My Query is:
1. Will this money be treated as my ‘Income from other source’.
2. Will i have to pay income tax on this amount.
3. If I invest this amount in some fix deposit or any other investments will I be taxed?
4. He has transfered aroung 20Lacs and there is still time to pay the amount to the builder. Can this money be invested for about a years time so we get some benifits on this.
Again my main concern is will I have to pay the income tax for all this amount.
Thanks,
Rahul.
Dear rahul, why your brother is routing his money meant for builder through your acct? What about his own acct?
Thanks
Ashal
Hi Ashal, as his account was not operated for about 2-3 years, the account is closed.
Dear Rahul, you mean to say, your brother is paying for his house via your bank account. Am I correct?
Thanks
Ashal
Dear Rahul, what’s the end use of this money by you? Was the money gifted to you for your own consumption or you received it merely as a carrier & transfer it to some else?
Thanks
Ashal
Actually my brother has bought a flat over here on his name. So all this money will be utilised for this.
Rahul,
On an another point, please make sure that your bank account is not being used as a via media for regular incoming transactions / credits. You may invite a hassle of tax man’s queries on credits being made to your account and a challenge for you to prove that it is not your income but a gift from a blood relative which is tax free.
depends on who the money came from and what the money is (gift/loan/repayment etc.)
Well this money was just transfered by my brother from his US account to my savings/salary account in India.
As a gift it is tax free. Have a gift deed or letter of agreement made so that if there is a scrutiny later (chances are high today as everything is computerized) you can show it as proof to the taxman